CROWDFUNDING – AN INNOVATIVE METHOD OF FINANCING IN UKRAINE
DOI:
https://doi.org/10.32689/2523-4536/71-2Keywords:
financing, crowdfunding, innovation, social and economic development, local community, Internet platforms, social-networksAbstract
The research identified innovative characteristics of crowdfunding, which make it an effective way of financing projects of social and economic development. It is hypothesized that the most effective methods of financing modern innovations are related to the environment of their functioning – the modern information and communication space represented by the Internet and social networks. This study reveals the essence of the concept of crowdfunding as an alternative way of financing creative ideas, startups, innovations, the latest technologies, socially significant projects in the conditions of the development of computerization and informatization. The subjects of this financing instrument are identified, and the essence of the online platforms, which are used to attract monetary allocations for the financing of the projects presented on them, is determined. The advantages for individual investors regarding investing money through crowdfunding are summarized. Approaches to understanding the essence of crowdfunding have been found. The criteria for evaluating the level of crowdfunding development are proposed: the degree and timeliness of information provision, the level of activity, the diversification of types of platforms, the interaction of the resource with the banking sector, the level of public awareness, the level of state influence. The relationship and the difference between crowdfunding and crowdsourcing are defined. Crowdfunding platforms internationalize projects and increase their chances of successful implementation. The state regulatory policy regarding crowdfunding in various states was analyzed and its financial management in Ukraine was proposed. It was established that, under the conditions of insufficient financial resources, crowdfunding is a high-quality alternative to standard investment methods, and the main environment of the subjects is medium-sized enterprises in Ukraine. The factors hindering the development of an alternative method of financing in Ukraine are outlined, as well as recommendations are provided for its further functioning in our country.
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